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Selling is selling but the tools we use today have changed and the retail environment where dealers compete for the business has certainly changed. During the last five years, the Internet, BDCs and CRM tools have grown in scope and number, and dealerships recognize they need training programs to maximize the effectiveness and efficiencies of their various sales departments.
We are seeing new training programs and techniques evolve, including a growing use of online, interactive and video channels. Many sales associates are from the MTV generation and very comfortable with instruction information online. There are many training options from various sources and a number of good companies providing training and support for dealers. Digital Dealer recently spoke with two trainers in the field about technology and online sales training. Dennis Colome, director of training from Autobytel and Cory Mosley, president of Mosley Automotive, shared some of their thoughts about training needs and trends for dealers.
What kind of training do dealership sales teams need? Cory: Dealerships need training on how to interact with the technology-based consumer. This is not directly related to Internet-generated leads, but the more than 86 percent of consumers who do research online prior to visiting or contacting a dealership. As a result, sales associates need to adapt their selling skills and build a better understanding of what today’s auto shopping prospect expects from them and their dealerships. Dennis: Dealership sales teams need training in three key areas. 1) Understanding the customer. If the sales associate understands the needs of the customer and where that customer is coming from, it is much easier to help them and provide a positive and successful sales experience. 2) Telephone skills. Phone training is critical— most dealerships suffer from poor phone skills. 3) Using the Internet. Sales personnel need to learn how to fully leverage the Internet to communicate and follow up effectively with both prospects and current customers. This includes learning database management, as well as knowing how to create compelling e-mail templates and how/when to send an effective e-mail. A key part of this training is learning the psychology of the Internet customer and using that knowledge to create strategic e-mail templates.
Is in-person training more effective than online training? Cory: They can both be effective if the training is defined. For example, in-person training is more effective if it includes hands-on and in-action training. If a sales professional is getting trained to improve phone skills, making live calls from his or her dealership with a trainer is more effective than online training. If training involves a theory or process, online training is just as effective as in-person. Dennis: In-person training tends to be more effective because of the personal interaction. When you are teaching a new skill set or creating new habits, you often get resistance. With in-person training, you are able to make sure that your student grasps and embraces the training—plus it provides opportunities to consistently reinforce the new material. You also have the opportunity to reason with the student and provide relevant real world examples that help them to “see the light.” In-person training also allows you to sit side-by-side with the student to teach, demonstrate, evaluate, and to make sure that they practice the exercise. In-person training can also be much more effective for teaching skill sets on their personal computer as a trainer can monitor the students as they execute the process. Additionally, if any technical or physical limitations emerge, the trainer is present to find a way around those barriers so that the appropriate sales processes can be implemented.
What are the benefits of online training? Cory: This depends on the type of online training. If the training is fixed content then the ability to access it 24/7 is a benefit as is the ability for trainees to go over the information in a self-paced manner. If the online training is real-time and delivered by a trainer via presentation software such as WebEx or similar platforms then online training can be given more frequently and in a most cost effective fashion than in person training. Dennis: Online training has many benefits. It is much easier and quicker to launch on a wide scale. It provides a foundation of sales principles and ideas that can be built upon and reinforced with onsite or telephone training. It provides excellent follow-up opportunities, allowing both dealers and trainers to evaluate whether training is taking hold—i.e., evaluate the overall knowledge curve. And it both reinforces the training material and allows a support vehicle in instances of dealership sales personnel turnover.
What are the primary challenges in training dealership staff? Cory: Getting buy-in from the top of the house—that is the owner, general manager and sales managers. Also resistance to change, as we are an industry that slowly embraces change, and then it’s a question of the raw talent level and their ability and desire to learn. Dennis: One of the two primary challenges of dealership training is management buy-in. Once we are able to demonstrate how training can dramatically improve a dealership’s ROI, it is much easier to not only convince management to sign up, but also to continue to reinforce the process. Fortunately, we are able to present many case studies of success—with solid numbers— to help dealerships overcome any resistance or skepticism.
The other challenge is workforce turnover. This is a chronic problem in the dealer world but it is an obstacle that can be overcome if and when the new sales processes become second nature to the sales force and management. Then, they are easily carried over to new personnel. Online training and consistent refresher courses are also crucial to institutionalizing successful sales processes and to overcoming the challenges that turnover presents.
How often should training occur? Cory: It varies based on the goals of the store; initial immersion could be daily and then taper off to weekly, bi-weekly, monthly and quarterly Dennis: In order for someone to create a new habit they must do something for 21 days in a row. Our experience shows that following up on initial training three, six and nine weeks later provides optimum process retention. Once the habit is in place, trainers can provide support and teach additional skill sets at a less aggressive pace, about every other month.
How long after a training session should a dealer expect to see improved results? Cory: This is a tough one as individuals learn and apply things differently. Based on the type of training, you can see results in a few days or longer. Learning and becoming proficient on an Internet process could take months; phone appointment training benefits could be visible in 24 to 48 hours. Dennis: Dealers should see immediate results after training. Training tends to fire up salespeople, and having solid processes makes them more enthusiastic about their job and their prospect for success. Sales should continue to rise over the next four months if the dealership continues the course.
How do you set the expectation of what training will accomplish with a dealer? Cory: You properly assess the situation in advance and do not simply apply a one-size fits all approach to training. Dennis: Dealers’ expectations need to be carefully set. It is critical that the trainers provide an assessment of the skill sets of the workforce to management. If the trainers have identified significant roadblocks or barriers to success within the workforce, they need to be discussed.
In our Performance Coach Process Training, we work to take the guesswork out of managing salespeople. Our main message is that if the process is followed they will see the results.
How frequently should dealers have refresher training to reinforce initial training instructions and plans? Cory: This is specific to the type of training provided and we will work with our dealers to set up bi-monthly or quarterly refresher training to make sure what they learned has stuck. The evidence is that employees continue to use effective techniques and processes taught in the training sessions. Dennis: Dealers and salespeople should have a refresher training of some kind once a month at least every other month. If the processes are not being followed or there is significant turnover in the dealership—or if the results are declining—refreshers should be more frequent. We have found that when salespeople get really busy, they have a tendency to skip steps and get off track without even knowing it. A very important part of our follow up training at Autobytel is mystery shopping which we do monthly to gauge results. Dealers and management should follow suit and “mystery shop” and inspect their salespeople weekly for patterns of defection.
Do dealers have an idea of how many training days a year a sales team should have? Cory: Some dealers are up on this and know continued training is critical. Typically however most dealers are not aware of what is needed to affect their processes and results in the store. Most dealers want the fewest number of training days from an expense point and still get all the results. We then work to educate them on how repetition and refresher sessions can show a more long-term impact on their profitability. Dennis: We believe it can —and probably will—take an average dealership nine days of training a year. Most dealers don’t know or expect this. In theory, if you teach the staff once, they should have learned it. But it takes time for best practices and new habits to take hold and become second nature. Without training follow up, most people revert to old habits or are unable to take what they learned from a seminar and put it in place at their dealership. Turnover is also a major issue. Several years ago, a major OEM said sales turnover at an average, untrained dealership was 140 percent and the dealerships with continuous training, 104 percent.
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